Armed forces given budget, materiel boost
Even as the Modi government is facing a stiff challenge on the Line of Control ( LoC) and International Border in Jammu and Kashmir due to rampant cross- border violations by the Pakistan Army, the BJP- led NDA government — in its first 100 days in power — took a slew of measures to expedite the process for acquisition of badly- needed weaponry and equipment for the armed forces, boost defence indigenisation by steps including hiking of the FDI limit from 26 to 49 per cent, and hiking the defence budgetary allocation further in its first Budget, albeit by a modest margin compared to the interim budget early this year by the previous government.
In a strong move, the Modi government also scrapped a seven- year- old global tender worth thousands of crores for acquisition of 197 helicopters for the Army and IAF after the acquisition process was mired in allegations of corruption. In its first 100 days, the government cleared defence deals worth over ` 40,000 crores and took a number of decisions — to boost Indian industry and reduce capability gaps faced by the armed forces — including a decision that the 197 helicopters will now be manufactured by an Indian company in collaboration with a foreign vendor, thereby generating business worth ` 40,000 crore in the country, clearing offset proposals for the proposed acquisition of Apache attack helicopters and Chinook helicopters from the US, equipping six ageing naval submarines with mid- life upgrades, approving procurement of 118 indigenously- developed Mk- II “Arjun” main battle tanks ( MBTs) for the Army, acquisition of anti- submarine warfare systems for new warships, and paving the way for acquisition of 16 multi- role helicopters ( MRHs) for the Indian Navy that had been hit by delays. Procurement of com- munication systems for Army troops stationed near the China border was also approved. The decisions were taken at crucial meetings of the Defence Acquisition Council headed by defence minister Arun Jaitley.
In just over a month after taking over office on May 26, the Modi government — in July this year — announced the hiking of the FDI limit in the defence sector from 26 to 49 per cent to boost defence manufacturing and the quest for defence indigenisation and critical technology.